Ch3 Analyzing The Marketing

Chapter Three
Analyzing the Marketing

Environment
Copyright 2009 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 3- slide 1
Analyzing the Marketing

Environment
Topic Outline
The Companys Microenvironment

The Companys Macroenvironemnt
Responding to the Marketing
Environment

Chapter 3- slide 2
The Marketing Environment

The marketing environment
includes the actors and forces
outside marketing that affect
marketing managements ability to
build and maintain successful
relationships with customers

Chapter 3- slide 3

More than any other group in company,
marketers must be the opportunity seekers.
They have disciplined methods- marketing
research and marketing intelligence for
collecting information about the marketing
environment, by studying the environment,
marketers can adapt strategies to meet the
challenges and opportunities

Chapter 3- slide 4

Microenvironment consists of the
actors close to the company that
affect its ability to serve its
customers, the company,
suppliers, marketing
intermediaries, customer markets,
competitors, and publics
Chapter 3- slide 5
The Companys
Microenvironment
Actors in the Microenvironment

Chapter 3- slide 6
The Companys Microenvironment

Marketing managements job is to
build relationships with customers
by creating customer value and
satisfaction. However, marketing
managers cant do this alone.

Chapter 3- slide 7
The Companys
Microenvironment
The Company
In designing marketing plans,

marketing management takes
other company groups into
account, these groups such as:

Chapter 3- slide 8
The Companys
Microenvironment
The Company
Top management
Finance
R&D
Purchasing
Operations
Accounting
Chapter 3- slide 9
The Companys
Microenvironment
Suppliers
Provide the resources to produce goods

and services
Suppliers problems can affect
marketing. Marketing managers must
watch supply availability and costs,
supply shortages or delays, labor
strikes can cause sales in the short run
and damage customer satisfaction in
the long run
Chapter 3- slide 10
The Companys
Microenvironment
Suppliers
Rising supply costs may force price

increases than can harm the
companys sales volume.
Treated as partners to provide
customer value

Chapter 3- slide 11
The Companys
Microenvironment
Marketing Intermediaries
Help the company

to promote, sell
and distribute its
products to final
buyers

Chapter 3- slide 12
The Companys
Microenvironment
Types of Marketing Intermediaries

Chapter 3- slide 13
The Companys
Microenvironment
Resellers
Are distribution channel firms that

help the company find customers
or make sales to them.
These include wholesalers and
retailers who buy and resell
merchandise

Chapter 3- slide 14
The Companys
Microenvironment
Physical distribution firms
Help the company to stock and

move goods from their point of
origin to their destinations

Chapter 3- slide 15
The Companys
Microenvironment
Marketing services agencies
Are the marketing research firms,

advertising agencies, media firms,
and marketing consulting firms
that help the company target and
promote its products to the right
markets

Chapter 3- slide 16
The Companys
Microenvironment
Financial intermediaries
Such as banks, credit companies,

insurance companies, and other
businesses that help finance
transactions or insure against the
risks associated with the buying
and selling of goods.

Chapter 3- slide 17
The Companys
Microenvironment
Competitors
The marketing concept states that to

be successful, a company must
provide greater customer value and
satisfaction than its competitors do.
Firms must gain strategic advantage
by positioning their offerings against
competitors offerings

Chapter 3- slide 18
The Companys
Microenvironment
Publics
Any group that has an

actual or potential interest
in or impact on an
organizations ability to
achieve its objectives

Financial publics
Media publics
Government publics
Citizen-action publics
Local publics
General public
Internal publics
Chapter 3- slide 19
The Companys
Microenvironment
Publics
Financial publics: this group

influences the companys ability to
obtain funds, banks, investment
houses, and stockholders
Media publics: this group carries
news, features. It includes
newspapers, magazines, radio and
television stations
Chapter 3- slide 20
The Companys
Microenvironment
Publics
Government publics: management

must take government developments
into account, marketers must consult
the companys lawyers on issues of
product safety, truth in advertising
Citizen action publics: a companys
marketing decisions maybe questioned
by consumer organizations ,
environmental groups and others
Chapter 3- slide 21
The Companys
Microenvironment
Publics
Local publics: this group includes

neighborhood residents and
community organizations. Large
companies appoint a community
relations officer to deal with the
community, attend meetings,
answer questions and contribute to
the worthwhile causes
Chapter 3- slide 22
The Companys
Microenvironment
Publics
General public: a company needs

to be concerned about the general
publics attitude towards its
products and activities
Internal publics: this group includes
workers, managers, volunteers and
the board of directors.
Chapter 3- slide 23
The Companys
Microenvironment
customers
Customers are the most important

actors in the companys
microenvironment. The aim of the
entire system is to serve target
customers and create strong
relationships with them
There are five types of customer
markets
Chapter 3- slide 24
The Companys
Microenvironment
Customers
Consumer markets: consist of

individuals and households that buy
goods and services for personal
consumption
Business markets: buy goods and
services for further processing or for use
in the production process
Reseller markets: buy goods and
services to resell at a profit
Chapter 3- slide 25
The Companys
Microenvironment
Customers
Government markets: are made up of

government agencies that buy goods
and services to produce public services
or transfer good and services to others
who need them
International markets: consist of these
buyers in other countries, including
consumers, producers, sellers and
governments
Chapter 3- slide 26
The Companys
Macroenvironment

Chapter 3- slide 27
The Companys
Macroenvironment
Demographic Environment
Demography is the study of human

populations in terms of size, density,
location, age, gender, race, occupation,
and other statistics
Demographic environment is important
because it involves people, and people
make up markets
Demographic trends include age, family
structure, geographic population shifts,
educational characteristics, and
population diversity
Chapter 3- slide 28
The Companys
Macroenvironment
Changing age structure of the population

_ The post world war II baby boom
produced 78 million
Baby boomers include people born between
1946 and 1964
Most affluent Americans
The baby boomers have been one of the
Most powerful forces shaping the marketing
Environment
Chapter 3- slide 29
The Companys
Macroenvironment
Generation X includes people born

between 1965 and 1976
High parental divorce rates
Cautious economic outlook as they
grown up during time of recession &
corporate downsizing

Chapter 3- slide 30
The Companys
Macroenvironment
Less materialistic they prize

experience not acquisition
Family comes first, career second
Lag behind on retirement savings

Chapter 3- slide 31
The Companys
Macroenvironment
Millennials (gen Y or echo

boomers) include those born
between 1977 and 2000
Comfortable with technology
Includes
Tweens (ages 812)
Teens (1319)
Young adults (20s)
Chapter 3- slide 32
The Companys
Macroenvironment
Generational marketing is
important in segmenting people by
lifestyle of life state instead of age.
some experts warn marketers to be
careful about turning off one
generation each time they craft a
product or message that appeals
effectively to another
Chapter 3- slide 33
The Companys
Macroenvironment
More people are:

Divorcing or separating
Choosing not to marry
Choosing to marry later
Marrying without intending to have
children
Increased number of working women
Stay-at-home dads
Chapter 3- slide 34
The Companys
Macroenvironment
Growth in U.S. West and

South and decline in
Midwest and Northeast
Moving from rural to
metropolitan areas
Changes in where people
work
Telecommuting work at
home or in a remote office to
conduct the business by
phone, fax or internet
Home office
Divorcing or separating
Chapter 3- slide 35
The Companys
Macroenvironment
Changes in the Workforce

More educated, the increased
number of educated people
will increase the demand for
quality products, books ,
magazines, and personal
computers
More white collar
Chapter 3- slide 36
The Companys
Macroenvironment
Increased Diversity
Markets are becoming more

diverse
Includes:

International
National
Ethnicity
Gay and lesbian
Disabled
Chapter 3- slide 37
The Companys
Macroenvironment
Economic Environment
Economic environment consists of

factors that affect consumer
purchasing power and spending
patterns
Nations vary greatly in their levels and
distribution of income, some countries
have the industrial economies which
constitute rich markets for many
different kinds of goods
Chapter 3- slide 38
The Companys
Macroenvironment
Subsistence economies consume

most of their own agriculture and
industrial output and offer few
market opportunities
In between are developing
economies which can offer
outstanding marketing opportunities
for the right kinds of products
Chapter 3- slide 39
The Companys
Macroenvironment
Changes in income
Value marketing
involves ways to offer
financially cautious
buyers greater value
the right combination
of quality and service
at a fair price
Chapter 3- slide 40
The Companys
Macroenvironment
Changes in Consumer Spending Patterns
Ernst EngelEngels Law

Differences noted over a century
ago by Ernst Engel in how people
shift their spending across food,
housing, transportation, health
care, and other goods and services
categories as family income rises
Chapter 3- slide 41
The Companys
Macroenvironment
Changes in Consumer Spending Patterns
As income rises:
The percentage spent on food
declines
The percentage spent on housing
remains constant
The percentage spent on savings
increases
Chapter 3- slide 42
The Companys
Macroenvironment
Natural Environment
Natural environment involves the

natural resources that are needed as
inputs by marketers or that are
affected by marketing activities
Trends
Shortages of raw materials

Increased pollution
Increase government intervention
Environmentally sustainable strategies

Chapter 3- slide 43
The Companys
Macroenvironment
Natural Environment
Environmental sustainability:
Developing strategies and practices
that create a world economy that
the planet can support indefinitely,
they are responding to consumer
demands with more
environmentally responsible
products.
Chapter 3- slide 44
The Companys
Macroenvironment
Technological Environment
Forces that create new

technologies, creating new
products and market opportunities

Chapter 3- slide 45
The Companys
Macroenvironment
Technological Environment
Most dramatic
force in changing
the marketplace
Creates new
products and
opportunities
Safety of new
product always a
concern
Chapter 3- slide 46
The Companys
Macroenvironment
Political Environment
Political environment consists of

laws, government agencies, and
pressure groups that influence or
limit various organizations and
individuals in a given society

Chapter 3- slide 47
The Companys
Macroenvironment
Legislation regulating business

Increased legislation
Business legislation has been
enacted for two reasons:
1.To protect companies from each
other
2.To protect consumers from unfair
business practices such as telling
lies in the advertisement

Chapter 3- slide 48
The Companys
Macroenvironment
_ Changing government agency enforcement

* International marketers will encounter
dozens, or even hundreds of agencies set
up to enforce trade policies and regulations.
* Marketers need to know about major laws
protecting competition, consumers and
society. They need to understand these
laws at local, national and international
levels
Chapter 3- slide 49
The Companys
Macroenvironment
Increased emphasis on ethics

Socially responsible behavior
companies encourage their managers to
look beyond the regulatory system
allows and simply do the right things
these socially responsible firms seek out
ways to protect the long run interests of
their consumers and the environment

Chapter 3- slide 50
The Companys
Macroenvironment
Cause-related marketing:
To exercise the social responsibility and build
more positive images, many companies are
now linking themselves to worthwhile causes.
These days, every product seems to be tied to
some cause.
This concept link the purchases of the company
products and services with fundraising for
worthwhile causes or charitable organizations.
But this concept can be a more strategy for
selling than a strategy for giving
Chapter 3- slide 51
The Companys
Macroenvironment
Cultural Environment
Cultural environment consists of

institutions and other forces that
affect a societys basic values,
perceptions, and behaviors

Chapter 3- slide 52
The Companys
Macroenvironment
Persistence of Cultural Values
Core beliefs and values are persistent

and are passed on from parents to
children and are reinforced by schools,
churches, businesses, and government
Secondary beliefs and values are
more open to change and include
peoples views of themselves, others,
organization, society, nature, and the
universe
Chapter 3- slide 53
The Companys
Macroenvironment
Shifts in Secondary Cultural Values
Peoples view of themselves

Yankelovich Monitors
consumer segments:
Do-it-yourselfersrecent movers
embodying the whole do-ityourself attitude
Adventurers
They like to view themselves as
doing things others wouldnt
dare to do
Chapter 3- slide 54
The Companys
Macroenvironment
Peoples view of others

More cocooning : in which people are
going out less with others and are
staying home more to enjoy the creature
comforts of home and hearth from the
networked home office to home
entertainment centers.
Chapter 3- slide 55
The Companys
Macroenvironment
Peoples view of organizations

people vary in their attitudes towards
corporations, government agencies ,
universities and trade unions
Peoples view of society
Patriots defend it
Reformers want to change it
Malcontents want to leave it
Chapter 3- slide 56
The Companys
Macroenvironment
Peoples view of nature

Some feel ruled by it
Some feel in harmony with it
Some seek to master it
Peoples view of the universe

Renewed interest in spirituality
concerned with the meaning of life
and issues of soul and spirit
Chapter 3- slide 57
Responding to the Marketing

Environment
Views on Responding

Chapter 3- slide 58
A company has several options with

regard to its marketing environment.
A strong company takes a(n) ________
approach.
1.
2.
3.
4.
proactive
reactive
ingenuous
peaceful

Chapter 3- slide 59
A company has several options with

regard to its marketing environment.
A strong company takes a(n) ________
approach.
1.
2.
3.
4.
proactive
reactive
ingenuous
peaceful

Chapter 3- slide 60
A companys macroenvironment
consists of all of the following except
________.
1.
2.
3.
4.
demographic forces
economic forces
competitive forces
technological forces

Chapter 3- slide 61
A companys macroenvironment
consists of all of the following except
________.
1.
2.
3.
4.
demographic forces
economic forces
competitive forces
technological forces

Chapter 3- slide 62
________ include resellers, marketing

service agencies, and financial firms
that help a company to promote and
sell its offerings to its final customers.
1.
2.
3.
4.
Advertising agencies
Suppliers
Intelligence firms
Marketing intermediaries

Chapter 3- slide 63
________ include resellers, marketing

service agencies, and financial firms
that help a company to promote and
sell its offerings to its final customers.
1.
2.
3.
4.
Advertising agencies
Suppliers
Intelligence firms
Marketing intermediaries

Chapter 3- slide 64
Banks, insurance companies, and

credit companies that aid in
financial transactions are called
________.
1.
2.
3.
4.
financial intermediaries
marketing services agencies
physical distribution firms
positioning

Chapter 3- slide 65
Banks, insurance companies, and

credit companies that aid in
financial transactions are called
_________.
1.
2.
3.
4.
financial intermediaries
marketing services agencies
physical distribution firms
positioning

Chapter 3- slide 66
Financial, media, government, and

citizen-action are several types of
________.
1. taxing authorities
2. legal departments
3. publics
4. marketing mix elements

Chapter 3- slide 67
Financial, media, government, and

citizen-action are several types of
________.
1. taxing authorities
2. legal departments
3. publics
4. marketing mix elements

Chapter 3- slide 68
A companys ________ consists of its

suppliers, marketing intermediaries,
customers, competitors, and publics.
1.
2.
3.
4.
macroenvironment
microenvironment
business environment
marketing environment

Chapter 3- slide 69
A companys ________ consists of its

suppliers, marketing intermediaries,
customers, competitors, and publics.
1.
2.
3.
4.
macroenvironment
microenvironment
business environment
marketing environment

Chapter 3- slide 70
The baby boomer generation is made up

of the period ________.
1. 19601971
2. 19461964
3. 1980s
4. 19201929

Chapter 3- slide 71
The baby boomer generation is made up

of the period ________.
1. 19601971
2. 19461964
3. 1980s
4. 19201929

Chapter 3- slide 72
The shop until you drop mentality of

the 1990s has been replaced with a
more ________ approach.
1.
2.
3.
4.
save all you can

value is key
dont shop at all
splurge regularly

Chapter 3- slide 73
The shop until you drop mentality of

the 1990s has been replaced with a
more ________ approach.
1.
2.
3.
4.
save all you can

value is key
dont shop at all
splurge regularly

Chapter 3- slide 74
There are three trends in the natural environment that

marketers are monitoring. These are ________,
________, and ________.
1. shortages of raw materials; increased
legislation; increased consumerism
2. the green movement; shortages of raw
materials; increased pollution
3. increased pollution; increased government
intervention; shortages of raw materials
4. increased consumerism; increased population;
increased ethical expectations

Chapter 3- slide 75
There are three trends in the natural environment that

marketers are monitoring. These are ________,
________, and ________.
1. shortages of raw materials; increased
legislation; increased consumerism
2. the green movement; shortages of raw
materials; increased pollution
3. increased pollution; increased government
intervention; shortages of raw materials
4. increased consumerism; increased population;
increased ethical expectations

Chapter 3- slide 76
Which of the following is not one of the

reasons business legislation is
enacted?
1. To protect companies from each other
2. To protect companies from consumers
3. To protect consumers from unfair
business practices
4. To protect the interests of society

Chapter 3- slide 77
Which of the following is not one of the

reasons business legislation is
enacted?
1. To protect companies from each other
2. To protect companies from consumers
3. To protect consumers from unfair
business practices
4. To protect the interests of society

Chapter 3- slide 78
In exercising their corporate social

responsibility and building a more
positive image, companies are now
linking themselves to worthwhile
causes. This is referred to as ________.
1.
2.
3.
4.
marketing mix
marketing concept
cause-related marketing
Engels Law

Chapter 3- slide 79
In exercising their corporate social

responsibility and building a more
positive image, companies are now
linking themselves to worthwhile causes.
This is referred to as __________________.
1.
2.
3.
4.
marketing mix
marketing concept
cause-related marketing
Engels Law

Chapter 3- slide 80
Yankelovich identifies consumer

segments whose purchases are
motivated by self-views. Two examples
are _________ and __________.
1.
2.
3.
4.
Generation M; generation N
Refilled nests; do-it-yourselfers
Do-it-yourselfers; adventurers
marketing mix; positioning

Chapter 3- slide 81
Yankelovich identifies consumer

segments whose purchases are
motivated by self-views. Two examples
are _________ and __________.
1.
2.
3.
4.
Generation M; generation N
Refilled nests; do-it-yourselfers
Do-it-yourselfers; adventurers
marketing mix; positioning

Chapter 3- slide 82
A woman who drives a hybrid car,

consistently recycles, and buys
earth-friendly products is acting out
her view of ________.
1.
2.
3.
4.
cost
non-profit organizations
others
nature

Chapter 3- slide 83
A woman who drives a hybrid car,

consistently recycles, and buys
earth-friendly products is acting out
her view of ________.
1.
2.
3.
4.
cost
non-profit organizations
others
nature

Chapter 3- slide 84
Which of the following are included in

the major forces affecting a
companys macroenvironment?
1.
2.
3.
4.
Marketing mix, positioning, price

cultural, political/legal, economic
Marketing concept, goal setting, cultural
Baby boomers, minimum wage rates,
product/service

Chapter 3- slide 85
Which of the following are included in

the major forces affecting a
companys macroenvironment?
1.
2.
3.
4.
Marketing mix, positioning, price

Cultural, political/legal, economic
Marketing concept, goal setting, cultural
Baby boomers, minimum wage rates,
product/service

Chapter 3- slide 86

Ch3 Analyzing The Marketing

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Chapter Three

Analyzing the Marketing

Analyzing the Marketing

The Companys Microenvironment

Copyright 2010 Pearson Education, Inc.

The Marketing Environment

Copyright 2010 Pearson Education, Inc.

The Marketing Environment

Copyright 2010 Pearson Education, Inc.

The Marketing Environment

Copyright 2010 Pearson Education, Inc.

The Companys Microenvironment

Copyright 2010 Pearson Education, Inc.

In designing marketing plans,

Copyright 2010 Pearson Education, Inc.

Provide the resources to produce goods

Rising supply costs may force price

Copyright 2010 Pearson Education, Inc.

Help the company

Copyright 2010 Pearson Education, Inc.

Copyright 2010 Pearson Education, Inc.

Are distribution channel firms that

Copyright 2010 Pearson Education, Inc.

Help the company to stock and

Copyright 2010 Pearson Education, Inc.

Are the marketing research firms,

Copyright 2010 Pearson Education, Inc.

Such as banks, credit companies,

Copyright 2010 Pearson Education, Inc.

The marketing concept states that to

Copyright 2010 Pearson Education, Inc.

Any group that has an

Copyright 2010 Pearson Education, Inc.

Financial publics: this group

Government publics: management

Local publics: this group includes

General public: a company needs

Customers are the most important

Consumer markets: consist of

Government markets: are made up of

Copyright 2010 Pearson Education, Inc.

Demography is the study of human

Changing age structure of the population

Generation X includes people born

Copyright 2010 Pearson Education, Inc.

Less materialistic they prize

Copyright 2010 Pearson Education, Inc.

Millennials (gen Y or echo

More people are:

Growth in U.S. West and

Changes in the Workforce

Markets are becoming more

Copyright 2010 Pearson Education, Inc.

Economic environment consists of

Subsistence economies consume

Ernst EngelEngels Law

Natural environment involves the

Shortages of raw materials

Copyright 2010 Pearson Education, Inc.

Forces that create new

Copyright 2010 Pearson Education, Inc.

Political environment consists of

Copyright 2010 Pearson Education, Inc.